Zscaler stock price target raised to $355 from $310 at JMP Securities

Published 01/07/2025, 10:06
Zscaler stock price target raised to $355 from $310 at JMP Securities

Investing.com - JMP Securities has reiterated its Market Outperform rating on Zscaler (NASDAQ:ZS) while raising its price target to $355 from $310. The cybersecurity company, currently valued at $48.9 billion, has maintained impressive gross profit margins of 77.5% while delivering 25.5% revenue growth in the last twelve months.

The updated outlook follows a series of investor meetings held in Los Angeles on Wednesday, June 25, with Steve House, SVP of Product Management, and Catherine Hua, Senior Manager of IR & Strategic Finance.

JMP analyst Trevor Walsh maintained the positive rating on the cybersecurity company, which has seen its stock rise approximately 74% year-to-date.

This performance significantly outpaces the Russell 3000 index, which has gained 5.1% during the same period.

The price target increase represents continued confidence in Zscaler’s market position and growth prospects within the cybersecurity sector.

In other recent news, Zscaler announced a $1.5 billion convertible senior notes offering, with the notes due in 2028. The company plans to use part of the proceeds for capped call transactions to mitigate potential dilution upon note conversion, while the remaining funds will support general corporate purposes, including working capital and potential acquisitions. Additionally, UBS raised its price target for Zscaler to $365, maintaining a Buy rating, citing strong platform momentum and increased confidence in the company’s growth trajectory for fiscal year 2026. JMP Securities reiterated its Market Outperform rating with a $310 price target, emphasizing Zscaler’s robust performance and growth amid uncertain market conditions. The firm highlighted Zscaler’s impressive financial metrics, including a 23% revenue growth and an 18% free cash flow margin in the fiscal third quarter of 2025. Zscaler’s management team and its successful Zero Trust security platform were also noted as key strengths. These developments reflect Zscaler’s strategic financial maneuvers and continued market confidence from analysts.

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